The City of Los Angeles Deferred Compensation Plan is a supplementary retirement savings plan. It is available to all full-time employees. This voluntary program provides a resource for supplementing other retirement benefits you may receive from the City. Click here to visit the Plan's new Resource Center!

The City of Los Angeles Pension Savings Plan is a retirement savings plan for all part-time, temporary, and seasonal employees who are not eligible to participate in one of the City's three defined benefit retirement programs. Employees eligible for the Pension Savings Plan are enrolled automatically and participation is mandatory. Participating employees can access their account online at www.icmarc.org/lapsp.

The City’s Internal Revenue Code Section 457 Deferred Compensation Plan provides employees with tax-advantaged options for deferring a portion of their salary into individual accounts which can be used as a resource for future retirement income. Since participation is voluntary, joining the Plan requires completing an enrollment form and indicating the following preferences:

The amount per paycheck you’d like to contribute (up to the applicable annual limit)

The tax advantaged type of account you’d like to create (pre-tax, after-tax Roth, or both)

The investment options you’d like to direct your contributions towards

Participants may withdraw from their accounts upon termination of employment with the City.

The Bigger Picture

Full-Time Employees - The City provides pension plans that provide for benefit payments upon retirement eligibility age based on a specific formula involving the number of years you’ve worked, how much you earned, and other factors. These programs are mandatory for full-time employees. These employees participate in one of the following three systems:

Los Angeles City Employees’ Retirement System (for all Civilian employees)

Fire and Police Pensions (for sworn Police Officers and Firefighters)

Department of Water and Power Employees Retirement Plan (for DWP employees)

Part-Time Employees - The City also offers a retirement program for its part-time, temporary, and seasonal workers called the Pension Savings Plan. This plan is mandatory for subject employees. Employees contribute 4.5% of pay and the City provides a matching 3% contribution. All contributions are placed into a guaranteed income fund, which can be withdrawn without penalty upon termination of employment.
To learn more you should contact the Plan you’re a member of (see below for contact information).

Q. What’s the difference between my retirement plan and the Deferred Compensation Plan?
A. Your retirement plan is a program you’re required to participate in, while the supplemental Deferred Compensation Plan is optional. Your retirement plan’s benefits are based on your years of service, salary, and other factors. Your Deferred Compensation Plan benefits are based simply on how much you accumulate in your account. Both programs provide sources of income which supplement one another in your retirement years.

Q. Why should I participate in the Deferred Compensation Plan if I’m already required to participate in a retirement plan?
A. Retirement plan benefits generally do not replace your full salary upon retirement. Participating in the Deferred Compensation Plan provides an opportunity to accumulate additional retirement savings to supplement your primary retirement plan income. This helps you to avoid a reduction in your standard of living when you retire.

Q. How do I find out which retirement plan I’m a member of?
A. Your paystub indicates a deduction for the retirement plan you’re a member of. In general, note the following:

Full-time civilian employees are members of the Los Angeles City Employees’ Retirement System (LACERS)

Full-time sworn Police Officers and Firefighters are members of the Fire & Police Pensions System (LAFPP)

Full-time employees of the Department of Water and Power are members of the DWP Retirement Plan

Part-time, temporary and seasonal workers are members of the Pension Savings Plan (PSP)

Q. Does the City contribute anything to my retirement?
A. The City makes contributions to the retirement funds but not to the Deferred Compensation Plan. Contributions vary by retirement plan.

Q. As a City employee do I also participate in Social Security?
A. No. City employees do not contribute to Social Security and therefore do not accrue Social Security benefits from City employment.

Q. If I have outside retirement assets, can I combine them with the City’s benefits?
A. You may be able to combine assets, depending on the type of assets you have. If you have worked with another government agency you may be eligible to purchase service credit with your retirement plan – you should contact the retirement plan to see if you’re eligible. If you worked for an employer with a 401(k), 403(b), 457 or similar deferred compensation plan, or have Individual Retirement Accounts (IRAs), you may be able to roll those assets over to the City’s Deferred Compensation Plan.

Q. When can I retire? Retirement ages vary by plan. Within a particular plan, there may also be different “tiers” of benefits which apply to different groups of employees, depending upon date of hire. You should contact your retirement plan to find out which tier you’re a member of and specific details regarding retirement eligibility dates. Contact information is at the bottom of this page.

Q. How do I enroll in the Deferred Compensation Plan?
A. Visit the Plan's Resource Center and click "Join the Plan" to begin. You can also visit our City Hall Service Center during regular office hours in City Hall (200 N. Spring Street), Room 867, Monday through Friday from 8:00 a.m. - 4:00 p.m.